Formulate a linear programing model

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Reference no: EM13231588

The western Company has 3 branch plants with excess production capacity. The company has a new product ready to begin production, and all 3 plants have this capability, so some of the excess capacity can be used in this way. The product can be made int 3 sizes (large, medium, small)that yield a net unit profit of $420, $360, $300 respectively. Plants 1, 2, 3 have the excess capacity to produce 750, 900, 450 units per day of this product, regardless of the size or combination of sizes involved. The amount of available in-porcess storage space also impose a limitation on the production rates of the new product. Plants 1,2,3 have 13,000, 12,000 and 5,000 square feet of in-process storage space available for a day's produciont. Each unit of the large, medium and small sizes produced per day requires 20, 15, 12 square feet. Sales forcast indicate that if available, 900, 1200 and 750 units of the large, medium, and small sizes would be sold per day. At each plant, some employees will need to be laid off unless most of the plant's excess production capacity can be used to produce the new product. To avoid layoff, managment has decided that the plants should use teh same percentage of there excess capacity to produce the new product.

1. Formulate a linear programing model for this problem by:

a)Listing and labeling all of the decision variables.
b)Creating an objective function for the model
c) List all of the contstraints for this model

Complete model not just an excel sheet.

2. Solve the model using Excel solver. Give the value for each decision variable and the objective function.

Reference no: EM13231588

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